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right. that's why it's at a stratospheric high. >> i believe coming in the mid-term elections we'll be higher than where we are now. >> thank you, guys. appreciate it. appreciate it. "forbes on fox" next. captioned by closed captioning services, inc spending tsunami heading for your wallet. some say democrats will be squashed in november, that means taxpayers will be whacked when the lame duck congress goes on spending frenzy. time to baton down the hatches? i i'm varn varn. we have steve forbes, elizabeth macdonald, quentin hardy, and stephane fitch. >> i expect a spending tsunami in the lame duck. since president took office we have blown hole in the balance sheet size of
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germany. they've gotten out of control -- the fiscal maniacs. we're trying to drink ourselves sober. there are fiscal restraints that the tea party talk about and everybody is dismissive of them. we risk a downgrade to the u.s. triple-a credit rating we have had since 1913. if that happens, borrowing costs will soar. >> look at specific items that may come down the pike at us. i'll jscroll it on the screen. we look at potential and likely spending, "forbes," is that what we'll see, spending like this? >> you won't see the spending that the spendocrats want because of the election. the american mood changed profoundly. democrats survive, especially in the senate, those coming up for re-election will be scared out of their wits and they will go against the
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spending thing. any big spending plan will be blocked in the senate. all the desire the administration to get big bail-out for municipalities, good luck, go to greece. you won't get it from washington. >> mike? >> i hope steve is right but i fear there will be more spending. the bigger problem is the fed chairman said he will support the spending, by supporting the borrowing that the government has to do to support the spending. he said i'll buy all the treasury bonds you throw out there and spend your way to a bigger mess right now. the government debt totals 94% of the economy. record since world war ii. debt got us in the problem. it won't get us out of the problem. >> rich karlgaard, spending spree coming? >> no. steve is right on the politics. we got proof that the stimulus is a failure. the mber declared the
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recession over in june of 2009. by that point, only 6% of the $800 billion stimulus had been spent. no impact on ending recession. it's had aerrible impact on keeping recovery lackluster. all the arguments that the obama administration is making, the stimulus is the only thing that stood between us and the great depression was blown out of the water and the american people know it. >> stephane, are we getting a big spending spree? if we do, do you like it? >> i hope we will. they're probably right and we may not. we really could can use a lot more spending and a lot more tax cuts. i mean we need airports, we need new runways. i'd like to see dedicated bicycle lanes and high-speed rail. i'd like to esee smart tax cuts to push out trillion dollars they're on. it'd like an end to the corporate income tax for companies paying out 90% of the net income. save the economy, save the world. let's do it. >> let me go through the list
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again. you have want to see spending like this? $250 million because of healthcare workers because of healthcare? >> chump change. >> it. $14 million. treasury debt. $5.7 billion for pel grants. i saw on the list, $50 billion -- or was it $48 billion to settle government lawsuits. are you happy with that, stephane? >> $50 billion number was for infrastructure. put a zero on that thing. this country needs more airports, more bridges. we'd like to see more high-speed rail and dedicated bicycle lanes so rich can get back and forth to work. >> soon, like in the next decade. quentin hardy, what say you? >> spending isn't good or bad. it's what you put it toward. we have didn't spend money on bridges to nowhere and boondoggle. we saved the financial system which was broken in 2008. it's a reality. we're not paying for it
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because we don't have taxation which probably is a good idea now since people can't afford it. meanwhile, we have republicans coming out and talking about keeping the bush tax cuts. that's $4 trillion. they don't see how they make it up with the spending cuts. >> i must make a correction can. it was only $4 billion to settle government lawsuits. i was giving the lawyers unaccounted for bonus. sorry about that. >> easy to get out of control with this. >> under the bush tax cuts, though, we added equivalent of five pakistan, ten egypts, whatever the number, seven saudi arabia. we didn't have private net job creation. the issue is this, when it comes to spending, china could terrify with us a click of a key punching. they'll say we are going to decelerate the purchases of treasuries, and they did it with fannie and freddie. they stopped buying that debt. pushed the behemoth in
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conservatorship. >> if we do get the spending we're talking about, if we get it, does it help or hurt the economy? >> it hurts economy. crowds out the private investment and adds confusion. this is the real problem. everything they are doing, they spend money and they change the roles and everybody that want to invest in future. all that stephane is talking about on the balance sheet of the american corporations, continues to stay there. the best stimulus is getting that money off the sideline toward productive investment. >> mike, you talked about the fed getting out and buying government debt. does that help or hurt the economy if they do it? >> it hurts because it supports all the borrowing and it trashes the value of the u.s. dollar. look, the spending by the government was supposed to keep the unemployment rate below 8%. that was the big promise from the administration. it's been hovering between 9
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holy spir 10%. you first need jobs. if you don't have a job and not earning money, bicycle path won't do you much good. >> talking about a lame duck session. will we get more spending in the lame duck session. move to another issue in a lame duck session. if we get card check for the unions. does that help or hurt the economy? steve forbes, i know what you're thinking. >> it will hurt the economy. it's not going to get through, because the senate will block it. instead of a spending binge, you will get what you see in new jersey. more states follow new jersey and enact a budget woes spending level is below what it was five years ago. they need a good 10-cent cigar. >> last word from steve forbes. thank you, everybody. when we come back, the tea party is helping bring a new fairer tax plan to america. we're not talking about the bush tax cuts. find out what it is on
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"cashin' in." but first -- >> another wild eyed leftist radicalist. >> anti-business charges against the president mount, one of his top economic guys is rushing to his defense. is former fed chief paul volcker right or wrong? hear our fox business exclusive and you decide. ♪ [ male announcer ] every siness day, bank of america lends billions of dollars, to individuals, institutions, schools, organizations and businesses. ♪ working to set opportunity in motion. bank of america. i've been looking at the numbers, and i think our campus is spending too much money on printing. i'd like to put you in charge of cutting costs. calm down. i know that it is not your job. what i'm saying... excuse me? alright, fine.
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no, you don't have to do it. ok? [ male announcer ] notre dame knows it's better for xerox to control its printing costs. so they can focus on winning on and off the field. [ manager ] are you sure i can't talk -- ok, no, i get it. [ male announcer ] with xerox, you're ready for real business. oh. about what? uh, they don't really think you're an exchange student. what? they think you're a businessman, using our house to meet new clients in china. for reals, player? [ woman saks chinese ] they overheard a phone call. speaks chinese ] something about shipping with fedex to shanghai. and then you opened a bottle of champagne. that was for a science project. [ man and woman speaking chinese ] i'm late for..occer... rehearsal. [ man speaks chinese ] you and i are cool? i'll be home by curfew. [ male announcer ] we understand.® you need a partner who can help you go global. fedex.
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everyday i eat your soups, i save a lot of money. that's great. so, your rich and hearty soups have made me, rich and hearty. that's funny. i'm hearty because of your juicy steak, your potatoes... you're really, rich and happy. [ male announcer ] progresso. you gotta taste this soup. good morning, everyone, from america's news headquarters. i'm jamie colby. the russian capsule landed
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safely back on earth today. the spacecraft now in kazakhstan. the astronaut and two cosmonauts aboard the craft after spending six months on the international space station. the landing delayed by a day due to glitches in the undocking from the space station. new video coming in the fox news room of president mahmoud ahmadinejad arriving back in iran after his controversial visit this week to the u.n. where he claimed the 9/11 attacks were orchestrated by the u.s. president obama condemning the remarks as offensive and hateful. fox news has a one-on-one with iran's president and we asked about the remark. don't miss that interview and more of what he tells fox. you see it sunday on america's news headquarters at 11:00 a.m. eastern. keep it here. "cashin' in" right now. ♪ ♪ david asman snatch iing an
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exclusive this week with paul volcker and david getting him to tell us if he thinks the president is anti-business. listen to this. >> we just had a poll issued today that three-fourths of all u.s. investors view president obama as anti-business and think we have a biased against business from the government. how do you change that perception? >> i don't know. i think the perception is wrong. i do not understand what everyone thinks of president obama. he is not a wild-eyed leftist radical. it's ridiculous. he is a man in the middle and he has done things that i believe and he believes are in the interest of business. there has been excesses in the financial world. he will criticize and point that out. it's accurate. >> do you buy what volcker says about president obama
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being pro-business? >> reminds you of bill clinton, what is the definition of "is"? do bears hibernate? is green gecko green? of course he's anti-business. he says it every time he opens his mouth. he still took a bash at the greed of business. the poster boy is the 1099 provision of the poster bill. in 2012, every business has to file 1099 with tax i.d. number and everything else for every transaction above $600. this is going to crush small business with thousands of new paper they file at the i.r.s. >> he's called him fat cats so is he pro-business? >> he's not an african, not a muslim, not socialist. the poll cited three-quarters
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of investors. wall street thinks he's anti-business. not most businessman and not most americans. why does he think that? he criticizes them for destroying the financial system. they stood him up. they wouldn't see him at the white house. how do you treat the president of the united states that way? it's contemptible. giving them a little of the same medicine. it's fine. >> i don't believe anyone at the program said he was a muslim or this or that. we're talking if he is proor anti-business. >> i didn't stay on this program. but wall street is up since the guy came in. what do they want? >> this program is discussing whether or not president obama is pro or anti-business. that's what we're discussing on this program. not if he's a muslim. whether he's pro or anti-business. neil, what do you say? >> wall street is up 2700 points. what do you want? >> neil? >> regardless of where wall
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street is, i don't think that the president is anti-business so much as economically clueless. the man is a lawyer. lawyers have never been good at business. in addition to that, if you look at what he has done, pandered to the left and union and democratic base. he bashes business because it's good for them. he feels the way to get the economy going is spend government money. we know it doesn't work. keynesian economics failed. what you need to do is unshackle business rather than put additional restrictions and laws, regulations and taxes on business. that's why the economy stalled. he doesn't get that. >> victoria, pro or anti-business, president obama? >> i don't think he's anti-business per se. but he is anti-wealth. there is a theme where he said we had period of open market and now wealth is created and now it needs to
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be redisindustry butted and the government will decide who gets wealth and who doesn't get wealth going forward. it has people nervous because you have a heavy handed government involvement, not a free open market. >> stepping on toes in business. jack welsh said he's flat out anti-business. liz, bring you in. >> an academic. the u.s. did not wreck the financial system. europe and the mediterranean companies did it to themselves. getting back to this, the corporate taxes at the same level as they were in the height of the boom years. steve brings up the 1099. that is a tsunami of paperwork in and of itself. that could lay ground work for vat, which would be harmful to the u.s. economy. that's a dangerous thing. like handing the the keys -- it would be like happening keys to liquor store to an alcoholic.
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i don't know why i'm on alcoholics and spending spree but i feel like having a drink after seeing what is going on in washington! >> steve, chime in. >> no more anti-business than george bush was against winning the iraq war. he voted for the biggest bail-out ever of wall street. he pushes through the economic stimulus. all that said, it's fair to judge him on the record. he hasn't produced results. wall street bail-out only helped the wall street banker bankers. [ overtalk ] >> you are making a good point about the bail-out. look at details. pay czar, training the competitors of -- calling them speculators. in the commencement speech in spring, he said you want a fancy enough car and title, corporate offers through the competition, you know, better
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thing to do is work for a non-profit. >> if wall street was going to fail, stephane, america was going to fail. we were in a period of crisis and the stimulus that you mentioned is all government spending. it wasn't freeing the private sector. i hasn't worked. >> last word to neil. >> fair criticism. >> he doesn't get it with the economy. he wants to allow people going in public service, bureaucrats, to pay it back because it's more noble than going to private business. he doesn't understand how an economy works. >> up next, here is what we have for you. a stunner! a filmmaker behind a new documentary about the failing schools. he's blaming teacher unions! ha? a bigger stunner. someone at "forbes" says he couldn't be more wrong. >> even kids getting stupider ever year, or something is wrong in the education system. [ male announcer ] the financial headlines
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can be unsettling. but what if therwere a different sry? of one financial company that grew stronger through the crisis. when me lost their way, this company led the way. by protecting clies and turning uncertainty into confidence. what if that story were true? it is. ♪ but now, to get it really cooking, you need a little website development. some transparent reporting, so you know it's working. online ads and 1-on-1 marketing consultation. yellowbook's got all that. yellowbook360 has a whole spectrum of tools.
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60 seconds. teaching unions ruining american schools. documentary says it's so. why some here give
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whoa! teacher unions fighting mad after a documentary out this week blames them for our failing school system. but rich, you say that hollywood finally got something right, correct? >> i am thrilled hollywood got this right. in my adult lifetime i watched american students fall out of the top five, the top ten, and now out of the top 20 on a global basis. teachers union protect incompetent teachers and make
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it impossible for parents to choose the school they want to send the kids to. if this is backed by hollywood and rich technology people like bill gates is a thrilling moment, makes you confident things will turn. >> are teachers union helping or hurting the american public education system? >> probably not helping, but they're also not the whole of the problem. rich has a math problem here. how many bad teachers are there out there really? i can't recall having one i'd call really bad. this guy made "an inconvenient truth" before making this. it will spin both sides now. don't know whether to trust him for one or the another. it's not just about teachers. it's about parents and student transparency and testing for things that matter. i was in a school in oakland that did well in a terrible area. it was about presental involvement and teacher flexibility. not just about the teacher's union. too easy.
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>> i'd draw a distinction between teacher and teacher union. what say you? >> i agree. many years ago, there was a story about the national education association which is the big teacher's union. unfortunately, nothing has really changed. teachers unions are against the pro-children, pro-kids, pro-education things. against merit pay and charter schools and against vouchers. they want to keep the teachers with the longest tenure, not the ones that are good. if you look at the facebook millionaire claimed to give $1 million. the graduation rates are abomination. strongest union in new jersey. >> stephane? >> unions aren't the heroes, that's for sure. i don'the they're the problem -- i don't think they're the problem. teachers in canada and top-performing areas are unionized.
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editors at the "wall street journal" is unionized. the thing about it, successful parent produce successful children. if you want to make schools better, maybe we should try to focus on giving parents a better chance to succeed. >> wait a second. there are unions and there are unions. if you behave like a union, steelworkers in 1952, that's different from the unionization of the "wall street journal" editors for example. give steve the last word. >> our teachers unions haven't been blocking the reform we heard about. in washington, d.c., mayor was pro-reform. they gunned the man down in the primary. obama went along with it and killed a pro-choice program in washington where thousands of parents tried to sign up to get the kids out of miserable schools. he killed that and sent his daughters to a private school. >> he did. last word. thank you. coming up, stocks to help you
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get on the cover of "forbes" magazine billionaire special edition. ;7
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the annual "forbes" 400 list is out of billionaires. want your name on the list some day? our informers have suggestions. we start with neil. >> if you want to get on the rich list, you have to swing for the fences.
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luminex make biotesting equimment. >> what do you think of this? >> buying stocks that trade at 40 times earnings is a way to get poor quick. don't do it. >> if you don't like it, what do you like? >> aar, aerospace company, back office for airline industry. they were featured on the "forbes" 100 most trustworthy companies list, trading ten times earning. >> what do you think of that one, victoria? >> this company stock underperformed the dow index for 20 years, which i don't think is how you become a billionaire. >> sarcasm is a low form of wit. what is your stock pick? >> i like s-5 network. geeky but they speed up delivery of application and large network. important technology. i bet they get bought soon. >> mike has a comment. >> my concern is the inventory turnover is slowing down, stuart. the top finance guy sold a lot of stock recently. >> give me wha

Forbes on FOX
FOX News September 25, 2010 11:00am-11:30am EDT

News/Business. Financial analysts offer advice on the markets. (CC)

TOPIC FREQUENCY U.s. 6, Us 6, America 6, Washington 4, Steve Forbes 3, Cashin 2, Paul Volcker 2, Steve 2, Hollywood 2, New Jersey 2, Victoria 2, Obama 2, China 2, Quentin Hardy 2, U.n. 1, Stuart 1, Closed Captioning Services , Inc 1, Freddie 1, Mahmoud Ahmadinejad 1, Jamie Colby 1
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